[natilawson]

If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000. What is the effect of the sale on the accounting equation for the seller?

[natilawson]

If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000. What is the effect of the sale on the accounting equation for the seller?
Assets increase $52,000; owner's equity increases $52,000
Assets increase $85,000; owner's equity increases $85,000
Assets increase $137,000; owner's equity increases $137,000
Assets increase $140,000; owner's equity increases $140,000
None of these

[natilawson]

If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000. At the time of the sale, assume that the seller still owed $30,000 to TrustOne Bank on the land that was purchased for $85,000. Immediately after the sale, the seller paid off the loan to TrustOne Bank. What is the effect of the sale and the payoff of the loan on the accounting equation?
Assets decrease $30,000; owner's equity decreases $30,000; liabilities decrease $30,000
Assets increase $22,000; owner's equity increases $52,000; liabilities decrease $30,000
Assets increase $52,000; owner's equity increases $22,000; liabilities decrease $30,000
Assets decrease $55,000; owner's equity decreases $55,000; liabilities decrease $30,000
Assets increase $52,000; owner's equity increases $30,000; liabilities decrease $30,000

[Clough]

Hi, natilawson!

You've already asked this question three times by starting new threads. Doing so doesn't get you better answers and only causes confusion here.

Is what you're asking a homework question, please?

Thanks!

[Fr_Chuck]

Merged, will delete the next one

[natilawson]

It looks like it is the same question but it is not, and yes those are homework questions that I can't figure out...

Thanks for your help in advance.

[morgaine300]

The first two are the same. The only difference in the third post is adding paying of the loan, though it's still part of the same question.

The important thing to know here is that assets are recorded at their cost. So out of all that mess, what is the cost?